MIRA
INFORM REPORT
|
Report Date : |
07.11.2008 |
IDENTIFICATION
DETAILS
|
Name : |
THE SEKSARIA BISWAN SUGAR FACTORY LIMITED |
|
|
|
|
Registered Office : |
Seksaria Chambers, 5th Floor, 139, Nagindas Master Road,
Fort, Mumbai-400001, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
21.01.1939 |
|
|
|
|
Com. Reg. No.: |
11-2892 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U15420MH1939PLC002892 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMT09880D |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACT1343C |
|
|
|
|
Legal Form : |
A closely held public limited liability company |
|
|
|
|
Line of Business : |
Manufacturer of Sugar and Confectionery Products |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 3600000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established company having satisfactory track.
Financial position is satisfactory. Trade relations are fair. Payments are
reported as slow but correct. The company can be considered normal for business dealings, at usual
trtade terms and conditions. |
LOCATIONS
|
Registered Office : |
Seksaria Chambers, 5th Floor, 139, Nagindas Master Road,
Fort, Mumbai-400001, Maharashtra, India |
|
Tel. No.: |
91-22-40500900/ 22675485/ 22672145/ 40500999 |
|
Fax No.: |
91-22-212677061 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
|
Name : |
Mr. Kailashchandra Kesardeo |
|
Designation : |
Chairman and Managing Director |
|
Address : |
Seksaria Building 74, Netaji Subhash Road, Mumbai-400020, Maharashtra,
India |
|
Date of Birth/Age : |
03.04.1939 |
|
Date of Appointment : |
29.03.2007 |
|
|
|
|
Name : |
Mr. Prakashchandra Seksaria |
|
Designation : |
Whole-time Director |
|
Address : |
Sea Shells Building, 13, Darabhsa Lane, Off Napeansea Road,
Mumbai-400026, Maharashtra, India |
|
Date of Birth/Age : |
08.02.1943 |
|
Date of Appointment : |
17.04.2006 |
|
|
|
|
Name : |
Mr. Vinay K Seksaria |
|
Designation : |
Additional Director and Whole time Director |
|
Address : |
Seksaria Building 74, Netaji Subhash Road, Mumbai-400020, Maharashtra,
India |
|
Date of Birth/Age : |
17.09.1961 |
|
Date of Appointment : |
06.10.2005 |
|
|
|
|
Name : |
Mr. N P Singh |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Mangal Singh |
|
Designation : |
Additional Director |
|
Address : |
Vijay Villa, Level 4, 79, Worli Sea Face, Worli, Mumbai-400030,
Maharashtra, India |
|
Date of Birth/Age : |
01.11.1932 |
|
Date of Appointment : |
17.04.2006 |
|
|
|
|
Name : |
Mr. Y P Trivedi |
|
Designation : |
Additional Director |
|
Address : |
“Ministry Manor”, 62-A, Napeansea Road, Mumbai-400006, Maharashtra,
India |
|
Date of Birth/Age : |
06.01.1929 |
|
Date of Appointment : |
17.04.2006 |
|
|
|
|
Name : |
Mr. Shrikrishna Balvant Deo |
|
Designation : |
Director |
|
Address : |
Officer’s Colony, The Seksaria Biswan Sugar Factory Limited,
Biswan-261201, Uttar Pradesh, India |
|
Date of Birth/Age : |
01.05.1948 |
|
Date of Appointment : |
09.12.2006 |
KEY EXECUTIVES
|
Name : |
Mr. S L Choudhary |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 30.06.2007
|
Names of Shareholders |
|
No. of Shares |
|
Seksaria Industries Private Limited |
|
13039800 |
|
Bhavangar Oil Mills Private Limited |
|
2703000 |
|
Prakashchandra Seksaria |
|
1458600 |
|
Yashasvi Seksaria |
|
1389900 |
|
Geeta K Seksaira |
|
1338000 |
|
Ishwarshakti Holding and Traders Limited |
|
1108800 |
|
Vinay K Seksaria |
|
916800 |
|
Seksaria Confectioneries Private Limited |
|
777720 |
|
Anurag seksaria |
|
612000 |
|
Kailashchandra Kesardeo |
|
611340 |
|
Chandrakanta P Seksaria |
|
489600 |
|
Radhika Seksaria |
|
438000 |
|
Vivek K Seksaria |
|
414000 |
|
Aparna Seksaria |
|
410700 |
|
Preeti A Seksaria |
|
364260 |
|
Krishna Rice and oil Mills |
|
363660 |
|
U.P. National Industrial Corporation, Private Limited |
|
117000 |
|
Vivek K Seksaria |
|
16500 |
|
Anushree Fabrics Private Limited |
|
7500 |
|
Kailashchandra Kesardeo |
|
3600 |
|
Kailashchandra Kesardeo |
|
3000 |
|
Kailashchandra Kesardeo |
|
1200 |
|
Savitribai Kesardeo |
|
2700 |
|
Kailashchandra Kesardeo |
|
18000 |
|
Kailashchandra Kesardeo |
|
1740 |
|
Vivek K Seksaria |
|
4140 |
|
Total |
|
26611560 |
Equity Share Breakup (Percentage of Total Equity)
As on 30.09.2007
|
Category |
|
Percentage |
|
Bodies corporate ( not mentioned above) |
|
68.08 |
|
Director or relative of directors |
|
31.92 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Sugar and Confectionery Products |
||||
|
|
|
||||
|
Products : |
|
GENERAL
INFORMATION
|
Bankers : |
State Bank of India, Commercial Branch, 6A, Way Road, Gokhley Marg,
Lucknow-226001, Uttar Pradesh, India |
|
|
|
|
Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
Mr. K K Kshrsagar Chartered Accountant |
|
Name: |
Botliboi and Purohit Chartered Accountant |
|
Address : |
National Insurance Building, 204, Mumbai-400001, Maharashtra, India |
|
|
|
|
Holding Company : |
Seksaria Industries Private Limited |
|
|
|
|
Associates/Subsidiaries : |
·
Seksaria Behta Sugar Factory Private Limited U71130MH1985PTC036005 ·
Seksaria Farms Private Limited U0115MH1999PTC121056 |
CAPITAL STRUCTURE
As on 30.06.2007
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
37000000 |
Equity Shares |
Rs. 10/- each |
Rs. 370.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
26611560 |
Equity Shares |
Rs. 10/- each |
Rs. 266.116
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
266.116 |
266.116 |
26.300 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
470.547 |
407.597 |
555.500 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
736.663 |
673.713 |
581.800 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
407.994 |
549.499 |
473.700 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
407.994 |
549.499 |
473.700 |
|
|
DEFERRED TAX LIABILITIES |
32.294 |
31.123 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1176.951 |
1254.335 |
1055.500 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
337.639 |
224.799 |
231.900 |
|
|
Capital work-in-progress |
158.333 |
43.499 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
30.855 |
36.014 |
16.900 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
910.523
|
1003.670 |
1098.400 |
|
|
Sundry Debtors |
3.163
|
3.874 |
6.400 |
|
|
Cash & Bank Balances |
9.506
|
15.023 |
18.800 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
408.313
|
341.657 |
185.300 |
|
Total
Current Assets |
1331.505
|
1364.224 |
1308.900 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
385.803
|
148.819 |
339.600 |
|
|
Provisions |
294.578
|
265.382 |
162.600 |
|
Total
Current Liabilities |
680.381
|
414.201 |
502.200 |
|
|
Net Current Assets |
651.124
|
950.023 |
806.700 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1177.951 |
1254.335 |
1055.500 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
1869.156 |
1827.993 |
1464.548 |
|
|
Other Income |
17.170 |
9.062 |
22.423 |
|
|
Total Income |
1886.326 |
1837.055 |
1486.971 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
98.391 |
298.041 |
206.455 |
|
|
Provision for Taxation |
32.621 |
103.266 |
75.606 |
|
|
Profit/(Loss) After Tax |
65.770 |
194.775 |
130.849 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
1209.097 |
1041.623 |
819.509 |
|
|
Consumption of Stores and Spare parts |
72.675 |
41.652 |
0.000 |
|
|
Increase or Decrease in finished goods |
84.836 |
115.694 |
0.000 |
|
|
Salaries, Wages, Bonus, etc. |
58.181 |
51.646 |
52.212 |
|
|
Managerial Remuneration |
1.685 |
0.794 |
0.000 |
|
|
Payment to Auditors |
0.108 |
0.163 |
0.124 |
|
|
Interest |
22.624 |
24.686 |
30.588 |
|
|
Insurance Expenses |
2.898 |
2.057 |
2.404 |
|
|
Power & Fuel |
11.660 |
10.016 |
8.695 |
|
|
Depreciation & Amortization |
38.222 |
31.795 |
0.000 |
|
|
Other Expenditure |
285.949 |
218.888 |
366.984 |
|
Total Expenditure |
1787.935 |
1539.014 |
1280.516 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
3.49
|
10.61 |
8.79 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.26
|
16.30 |
14.09 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.89
|
18.76 |
13.41 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.44 |
0.35 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.48
|
1.43 |
1.68 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.96
|
3.29 |
2.61 |
LOCAL AGENCY
FURTHER INFORMATION
Performance during
the year:
During the year, sales of the company has increased marginally from Rs.
1827.993 Millions to Rs. 1869.156 Millions but due to surplus availability of sugar
which lead to sharp decline in sugar price, both at domestic and international
market and higher State Advised Price for cane fixed by the Uttar Pradesh
Government, the Profit before Depreciation, Interest and Tax has decreased
substantially from Rs. 354.522 Millions to Rs. 159.238 Millions. The Net Profit
after Tax has decreased from Rs. 194.775 Millions to Rs. 65.770 Millions, a
down fall of almost 66.23%
Dividend:
The board of Directors of the Company, at their meeting held on 14th
March, 2007 declared an interim Dividend at the rate of 1%. The Board
recommends that the interim dividend so declared and paid be treated as final
dividend for the year ended 31st March, 2007
Expansion of the
existing Unit:
The Board of Directors is pleased to inform that the factory completed
its expansion of its sugar unit ad started its cane crushing operation for the
sugar season 2006-2007 on the expansded capacity of 7500 TCD.
New Projects:
The company is installing molasses Distillery plant of 65 KLPD total
spirit with 30 KPLD ENA production Plant and 60 KLPD Absolute Alcohol Plant.
The Project work is almost completed and expected to commence trial run
shortly.
The company is also constructing Bio-Compost Plant for Converting
distillery effluent into bio manure. This plant consists of two big lagoons of
6750 M3 capacity each for storing spent wash (effluent) an bio compost yard.
This plant is also at advance stage and expected to be commenced shortly.
Bankers Charges
Report as per Registry
|
This form is for |
Creation of
charge |
|
Corporate
identity number of the company |
U15420MH1939PLC002892 |
|
Name of the
company |
THE SEKSARIA BISWAN SUGAR FACTORY LIMITED |
|
Address of the
registered office or of the principal place of business in India of the company |
Seksaria Chambers, 5th Floor, 139, Nagindas Master Road,
Fort, Mumbai-400001, Maharashtra, India |
|
Type of charge |
Immovable
Property Movable Property |
|
Particular of
charge holder |
Government of India
Ministry of Consumer Affairs, Krishi Bhawan, Department of Food and Public
Distribution Represented by : IFCL Limited, Nehru Place, Delhi-110019, India |
|
Nature of
description of the instrument creating or modifying the charge |
Deed of
Hypothecation Dated 19.08.2008 Memorandum of
Entry dated 19.08.2008 |
|
Date of
instrument Creating the charge |
19.08.2008 |
|
Amount secured by
the charge |
Rs. 85.482
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest Each installation
of the loan shall carry a simple interest of 2% below the bank rate
prevailing on the date of Disbursement of the installation of the loan. Additional
interest @ 2.5% p.a. over and above rate applicable above as penal rate of
interest in event of default in repayment / interest payment. Terms of
Repayment Repayment of the
loan along with interest shall commence after the expiry of 1 year Reckoned
form the date of each disbursement of the loan and shall be repaid in half
yearly installments not exceeding 8 in number. The interest on
the said loan shall be paid annjually fo the 1 year from the date of
disbursement of the loan after which it shall be paid half yearly along with
the installments of repayment fo the principal Margin As per agreement Extent and
Operation of the charge Pari passu 1st
charge by way of Hypothecation of all movable assets (save and except book debts)
including movable machinery, spares, tools and acc, and subject to the
charges created to be created in favour of borrowers bankers on the stock of
raw material, semi-finished and finished good, consumables stores and book
debts for securing WCk req. pari passu 1st charge by way of
mortgage on Immovable proeperties, buildings, p and M , Fixtures and
Fittings, situated at Village Jhajhar, Pargana and Tehsil Biswan, Sitapur,
Uttar Pradesh |
|
Short particulars
of the property charged |
Pari passu 1st
charge by way of Hypothecation of all movable assets (save and except book
debts) including movable machinery, spares, tools and acc, and subject to the
charges created to be created in favour of borrowers bankers on the stock of
raw material, semi-finished and finished good, consumables stores and book
debts for securing WCk req. pari passu 1st charge by way of
mortgage on Immovable proeperties, buildings, p and M , Fixtures and
Fittings, situated at Village Jhajhar, Pargana and Tehsil Biswan, Sitapur,
Uttar Pradesh |
Fixed Assets:
·
Freehold Land
·
Manpur Farm
·
Building at Biswan
·
Building at Mumbai
·
Tubewell
·
Plant and Machinery
·
Electrical Fittings
·
Air Conditioners and Refrigerator
·
Office Equipments
·
Wireless
·
Furniture and Fixtures
·
Vehicles
·
Live Stock
·
Computers
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government official
or a family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.47.67 |
|
UK Pound |
1 |
Rs.75.47 |
|
Euro |
1 |
Rs.61.19 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
43 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|